INR closes at all-time low of 83.41 against US dollar
The Indian rupee (INR) saw a slight dip of four paise, reaching an all-time closing low of 83.41 (provisional) against the US dollar on Wednesday. This decline was influenced by the strong American currency overseas, while a significant drop in crude oil prices from $76 per barrel to below $73 offered some support. However, a subdued trend in equity markets created a negative impact on the local unit.
Interbank foreign exchange market performance
In the interbank foreign exchange market, the rupee began at 83.39 against the US dollar and fluctuated within a narrow range of 83.38-83.41. It ultimately settled at its lowest-ever level of 83.41 (provisional), a decrease of four paise from Tuesday's close of 83.37. The previous record low closing level for the rupee occurred on November 24 this year at 83.40.
Economic indicators and market reactions
According to government data released on Tuesday, India's retail inflation increased to a three-month high of 5.55% in November but stayed within the Reserve Bank of India's (RBI) comfort zone of under 6%. Industrial production growth surged to a 16-month high of 11.7% in October, fueled by double-digit growth in manufacturing, power, and mining sectors' output. Forex traders are now eagerly awaiting the upcoming announcement of the US Federal Reserve's monetary policy scheduled for later today.
